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Unfair contract terms for small businesses to be banned

The Australian Small Business and Family Enterprise Ombudsman Bruce Billson has welcomed the Albanese Government’s move to introduce legislation to ban unfair contract terms for small businesses.

 

“This is a real problem for small and family businesses and it is very pleasing to see this election commitment being progressed so quickly by the Small Business Minister, Julie Collins, and the Assistant Minister for Competition, Charities and Treasury, Andrew Leigh,” Mr Billson said.

The Ministers said the government would be introducing civil penalty provisions ‘outlawing the use of, and reliance on, unfair terms in standard form contracts’.

Mr Billson said he has personally met with many, many small businesses who have highlighted this very problem.

ABF media

“We see in many contracts we review, examples of unfair terms. This is an area ripe for change,” Mr Billson said.

“Power imbalances between small business and large enterprises are exacerbated by unfair business practices and unfair contract terms.

“Addressing these issues will aid in rebalancing these relationships and promote economic growth.

“I encourage large enterprises doing business with smaller firms to be a kindly customer – patient and understanding, with good and generous intent, especially around contract terms.”

“Small businesses are run by real people who deserve our respect and empathy every day.”

ABF media

Mr Billson said he also welcomed the government’s move to update the definition of a small business in this legislation to increase the eligibility threshold from fewer than 20 employees to fewer than 100 employees, and introduces an annual turnover threshold of less than $10 million as an alternative threshold for determining eligibility.

Source: ASBFEO

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